Govt backs down on defence pay deal

The government will give defence personnel a two per cent pay rise, up from 1.5 per cent, but Labor says it is only happening to save Tony Abbott's job.

An Australian soldier in southern Iraq

(File: AAP)

Military personnel will receive a more generous pay rise after the Abbott government backed down from a below-inflation offer.

Putting the best possible gloss on a decision to up the increase from 1.5 per to two per cent, Prime Minister Tony Abbott vowed the government would never sell short the nations's defence forces.

The increase won't apply to Defence's civilian staff who have been offered an annual increase of 1.05 per cent.

Mr Abbott said the initial meagre pay rise, which the government has used to limit pay rises to commonwealth public servants generally, had been questioned by his own MPs.

"Many said to me is this the best you could do ... for those we often send into dangerous and difficult places to defend our people, our interest and our values," he told parliament on Wednesday.

The unpopular pay deal, branded as insulting to Defence personnel, was one of the "policy barnacles" Mr Abbott identified last year as hampering support for his government.

Others included the recently dumped GP co-payment and paid parental leave scheme.

The backdown has yet to sway Tasmanian independent senator Jacqui Lambie who has withheld support for government legislation in the upper house.

The former soldier said ADF personnel would be grateful for the increase, but suggested it might not be enough to win back her vote.

She will seek the views of Tasmanians and others in the defence force before making a decision.

Opposition Leader Bill Shorten welcomed the increase but said it only was only made to shore up Mr Abbott's leadership.

The "disgraceful decision" to cut defence pay should never have been made in the first place.

"It showed disrespect towards our servicemen and women and their families and didn't properly recognise the unique nature of military service," he said.

The slightly above-inflation pay deal will be referred to the Defence Force Remuneration Tribunal, but won't be backdated.

The decision will cost the defence budget about $200 million over the next four years.

The government says that can be met through efficiencies outlined in the first principles review.

Civilian staff at the department are set to take industrial action in protest at their pay offer.

The Australian Greens say the government should extend the new Defence deal to all public servants.


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Source: AAP


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